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R&D, Technology Spillovers And Stock Prices†

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  • Jakob B. Madsen
  • Martin Barner
  • Christian Farø

Abstract

. Theories of endogenous growth suggest that technological progress is driven by firms’ own R&D effort and knowledge spillovers. Using panel data for US firms over the period from 1990 to 1999 this paper tests the influence on stock prices of technological spillovers through firms’ purchase of intermediate products from other firms. The empirical results show that stock prices are significantly positively affected by knowledge spillovers through the input of intermediate products.

Suggested Citation

  • Jakob B. Madsen & Martin Barner & Christian Farø, 2008. "R&D, Technology Spillovers And Stock Prices†," Pacific Economic Review, Wiley Blackwell, vol. 13(5), pages 620-631, December.
    • Handle: RePEc:bla:pacecr:v:13:y:2008:i:5:p:620-631
    DOI: 10.1111/j.1468-0106.2008.00421.x
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